Why did Cadence Design Systems (CDNS) stock move recently?

On 9/1/2026, Cadence Design Systems moved -7.6% — Cadence shares fell sharply with other tech and software names as rising global bond yields and escalating Middle East geopolitical tensions (pushing oil higher and reviving inflation/Fed hike concerns) reduced investor risk appetite and pressured high-valuation growth stocks. This is MarketChacha's decoded reason from filings and credible news; it is education, not buy/sell advice.

Is Cadence Design Systems (CDNS) overvalued or fairly valued?

MarketChacha shows Cadence Design Systems's valuation in context — a trailing P/E of about 83.3, a forward P/E of about 34.1, a price-to-book of about 13.1 — alongside its revenue and profit growth and whether reported profit converts into operating cash, so you can judge value for yourself. MarketChacha does not issue ratings, price targets, or buy/sell advice.

Does Cadence Design Systems's reported profit turn into cash?

Over 3 years, operating cash flow fully covered reported profit — earnings are backed by real cash. MarketChacha computes this cash-conversion check (1.35×) from reported figures — education, not a rating.

What is Cadence Design Systems's revenue?

Cadence Design Systems reported revenue of $5.3B for FY2025, with net profit of $1.1B, per official filings.

What is the share price of Cadence Design Systems (CDNS)?

Cadence Design Systems last traded at $322.44 (-1.1% on the day), as of 10/20/2026 — a delayed quote shown for education, not investment advice.

Cadence Design Systems

CDNS · NASDAQ · Technology · United States

Snapshot

TickerCDNS

ExchangeNASDAQ

SectorTechnology

IndustrySoftware - Application

CountryUnited States

Employees15,445

HeadquartersSan Jose, United States

Websitewww.cadence.com

Filings tracked16

About Cadence Design Systems

Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions. The company offers functional verification services, such as Jasper, a formal verification platform; Xcelium, a parallel logic simulation platform; Verisium, a generative AI solution; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification, as well as digital IC design and sign off products, including Innovus platform; and custom IC design and simulation product include Virtuoso, a platform to design and verify analog. It also provides Xcelium logic simulator and other front-end verification and virtual prototyping technologies; controllers and physical interfaces; PCI Express, universal accelerator and compute express links, and multiple memory interfaces; and Tensilica, a digital signal processor. In addition, the company's design IP portfolio includes serializer/deserializer, peripheral component interconnect, USB, and other standard protocols; and Secure-IC, a solution for embedded security IP. Additionally, it provides System Design and Analysis (SD&A) platform, a solution that enables end-to-end system-level design and verification across chips, packages, PCBs, and electronic systems; Allegro X and Orca X platforms for PCB and advanced packaging; Sigrity X for signal and power integrity; AIR for RF design; Fidelity for computational fluid dynamics; Celsius for thermal and airflow analysis; Clarity 3D solver for electromagnetic and power electronics analysis and simulation; Integrity 3D-IC solution for 3D-IC and multi-chiplet designs; the Optimality Intelligent System Explorer, Reality digital twin, and Millennium enterprise multiphasic platforms; Allegro system design platform; and molecular modeling and simulation solutions and services. The company has a strategic collaboration with NVIDIA. The company was incorporated in 1987 and is headquartered in San Jose, California.

Who owns it

Insiders0.3%
Institutions91.7%
Public & other8.0%

2,203 institutional holders

Ownership breakdown from public market data.

Top holders

Blackrock Inc.9.68%
Vanguard Capital Management LLC6.54%
State Street Corporation4.73%
FMR, LLC3.47%
Invesco Ltd.3.26%
JPMORGAN CHASE & CO2.86%
Geode Capital Management, LLC2.61%
Vanguard Portfolio Management LLC2.53%

Largest institutional holders — last updated 6/30/2026.

Forensic scorecard

Margin has compressed by about 4.5 points over the period — profitability is trending down.

Cash conversion1.35×

Over 3 years, operating cash flow fully covered reported profit — earnings are backed by real cash.

Net margin trend25.5% → 20.9%

Margin has compressed by about 4.5 points over the period — profitability is trending down.

Return on equity20.3%

Latest ROE of 20.3% — capital is generating a healthy return.

Growth qualityrev 14% · PAT 3%

Profit growth is broadly tracking revenue growth — the earnings trend looks operational rather than one-off.

Computed by MarketChacha from reported figures (SEC XBRL). Education, not a rating or recommendation.

What's expected next

Next quarter

Rev $1.6B · EPS 2.03

Est. earnings growth +1.8%

Next fiscal year

Rev $7.2B · EPS 9.57

Est. earnings growth +17.4%

Analyst consensus estimates — not the company's own guidance.

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P/E ROE ROCE Margins Market cap

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Financials at a glance

Source: SEC XBRL

Annual

Quarterly · last 8

Revenue (FY2025)

$5.3B

Net margin

20.9%

ROE

20.3%

Revenue CAGR (2y)

+13.8%

Profit CAGR (2y)

+3.2%

EPS (FY2025)

4.06

Net profit (FY2025)

$1.1B

Ask MarketChacha about CDNS

Get a cited, plain-English answer — the “why”, not just data. Finance research only, never buy/sell advice.

Why it moved

Sep 1, 2026
Cadence shares fell sharply with other tech and software names as rising global bond yields and escalating Middle East geopolitical tensions (pushing oil higher and reviving inflation/Fed hike concerns) reduced investor risk appetite and pressured high-valuation growth stocks.
source 1 ↗source 2 ↗· confidence: high
Aug 25, 2026
CDNS rose on continued positive momentum from its late-July Q2 earnings beat and raised full-year 2026 revenue guidance to ~19% growth, driven by strong AI demand and record backlog.
source 1 ↗source 2 ↗source 3 ↗· confidence: high

Daily moves with the verified reason behind them. Education only — not investment advice.

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Financials

Yearly

Period	Revenue	Net profit	EPS	Net margin	ROE
FY2025	$5.3B	$1.1B	4.06	20.9%	20.3%
FY2024	$4.6B	$1.1B	3.85	22.7%	22.6%
FY2023	$4.1B	$1.0B	3.82	25.5%	30.6%

Quarterly

Period	Revenue	Net profit	EPS	Net margin
2026Q1	$1.5B	$335.7M	1.23	22.8%
2025Q3	$1.3B	$287.1M	1.05	21.4%
2025Q2	$1.3B	$160.1M	0.59	12.5%
2025Q1	$1.2B	$273.6M	1.00	22.0%
2024Q3	$1.2B	$238.1M	0.87	19.6%
2024Q2	$1.1B	$229.5M	0.84	21.6%
2024Q1	$1.0B	$247.6M	0.91	24.5%
2023Q3	$1.0B	$254.3M	0.93	24.9%
2023Q2	$976.6M	$221.1M	0.81	22.6%
2023Q1	$1.0B	$241.8M	0.89	23.7%

Figures as reported, in reporting currency. Source: SEC XBRL.

Filings & announcements

2026

10-Q filing
SEC7/29/2026
8-K — Results of operations, Exhibits
SEC7/27/2026material
8-K/A — Executive/director change
SEC5/12/2026
8-K — Executive/director change, Shareholder vote results
SEC5/12/2026material
10-Q filing
SEC5/1/2026
8-K — Results of operations, Exhibits
SEC4/27/2026material
8-K — Unregistered equity sale
SEC2/23/2026material
10-K filing
SEC2/19/2026
8-K — Results of operations, Exhibits
SEC2/17/2026material

2025

8-K — Executive/director change, Exhibits
SEC11/17/2025material
10-Q filing
SEC10/29/2025
8-K — Results of operations, Exhibits
SEC10/27/2025material
8-K — Material agreement, Unregistered equity sale
SEC9/4/2025material
10-Q filing
SEC7/30/2025
8-K — Results of operations, Exhibits
SEC7/28/2025material
8-K — Material agreement
SEC7/28/2025material

In the news

Education and discussion only — not investment advice. Financials from official filings (SEC/BSE) and reported company statements; market figures (delayed market data) are delayed and shown for reference only. Verify with the linked sources before acting.